Connecticut’s cannabis industry has welcomed the news that marijuana is to be rescheduled by the federal government.

The Trump administration issued an executive order Thursday, directing the attorney general to expedite moving cannabis from Schedule I to Schedule III under the Controlled Substances Act, effectively signaling that the drug is considered less dangerous.

It’s a move that the Biden administration had begun but left unfinished when Trump came into office. It does not legalize the drug at the federal level.

The Connecticut Cannabis Chamber of Commerce described the move as a “major milestone for federal cannabis policy.”

The change will remove cannabis from consideration under Section 280E of the U.S. Internal Revenue Code, a law that prohibits businesses from deducting most ordinary business expenses from their gross income if they are associated with the sale of a Schedule I drug.

“We commend the administration for advancing this policy and its potential to provide much-needed tax relief and regulatory clarity for state-licensed businesses,” said Adam Wood, president of the Cannabis Chamber of Commerce.

Entrepreneur David Salinas, CEO of Hi! People Cannabis Marketplace welcomed the rescheduling as a “meaningful correction,” but said it doesn’t go far enough.

“It’s not legalization, and it doesn’t resolve the fundamental conflict between federal law and state-regulated markets,” he said. “It should be viewed as a necessary first step or a patch, but certainly not a final solution.”

Industry experts also expect rescheduling to encourage major institutional investors to get involved in cannabis.